Skip to main content

EXAMINING THE INFORMATION TECHNOLOGY SECTOR IN WALES


Published this month, “The “Building The Future We Need” report from techUK - the UK’s leading technology membership organisation - sets out some of the digital challenges that Wales faces and how these can be addressed by the public and private sectors to benefit the economy over the next few years.

According to the report, the information technology sector in Wales employs around 24,000 people and is predicted to add around £1.5 billion to the economy over the next five years. But despite this impact, there are considerable challenges for the nation in terms of maximising the potential of the digital economy. 

In terms of digital infrastructure, residential superfast broadband coverage in Wales had reached 93% by 2019 with 4G data services at 58% for geographical coverage by all operators. 

In addition, Superfast Cymru had provided almost 733,000 premises across Wales with access to fast fibre broadband and, as a result of this work, superfast broadband coverage has more than doubled in Wales.

However, whilst this investment has led to use of digital devices growing over the last few years, nearly one in five of the Welsh adult population do not regularly use the internet. 

In fact, it is estimated that digital skill shortages cost Welsh businesses £350 million in 2018 which has resulted in many people in Wales being stuck in low-skill traps involving a cycle of low-skill, low-wage, and low-productivity.

This is exacerbated by the absence of a pipeline of digital skills with the wider population lacking basic digital knowledge, especially in schools where it is argued that there is little foundation for a sustainable digital culture.

Another potential issue down the track is the prospect of jobs being replaced through automation which seems to be a higher threat to Welsh employees because of the nature of the labour force i.e. 6.5% of jobs in Wales (or 130,000 roles) are amongst those with the highest potential for automation which is a higher rate than for the UK as a whole.

Given this, it is clear that more could and should be done to increase the use of digital technology within the Welsh economy. 

For example, the report suggests that digital can be used to accelerate local growth opportunities within a range of sectors that can contribute to jobs and prosperity including advanced materials and manufacturing, energy and environment, financial and professional services, food and drink, life sciences and tourism. 

In particular, concerted action should be taken to ensure that these sectors are at the forefront of digital adoption to support and accelerate their growth, especially in encouraging greater collaboration between local tech firms and firms in those growth sectors. 

The public and private sectors will need to work more closely together to strengthen the digital economy in Wales and innovators in government and business should also be challenged to come up with new digital ideas and solutions to solve some of the most important problems faced by society including housing, healthcare and supporting high streets.

In terms of education, Wales needs to be ahead of the curve of next-generation tech skills and this needs to start in schools with a digital curriculum for early years  pupils that prepares them for the future. 

But perhaps the most important aspect is to maintain the momentum in the increase in digital use over the last nine months where the COVID-19 pandemic and subsequent lockdown has acted as a catalyst to accelerate digital adoption across many Welsh businesses.

The question is whether this ‘new normal’ of remote working, e-commerce and increased use of digital platforms will continue or will it be the case that many people will want things to go back to how they were before the pandemic? 

One would hope it is the former rather than the latter and it is critical that the Welsh Government, business representative bodies, digital firms and educational institutions must now come together to ensure that Wales continues the digital transformation progress that has been made so far during the COVID-19 pandemic

Certainly, if firms and organisations of all sizes continue to advantage of the opportunities afforded by digital tech, the economy will prosper and thrive over the next few years.


Popular posts from this blog

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...

THE IMPORTANCE OF FRANCHISING

When we talk about start-ups and entrepreneurship, rarely do we discuss the potential of franchising not only as a way of establishing new ventures in the economy but also as a method of growing existing businesses. According to the British Franchising Association, franchising is the granting of a licence by one person (the franchisor) to another (the franchisee), which entitles the franchisee to own and operate their own business under the brand, systems and proven business model of the franchisor. The franchisee also receives initial training and ongoing support, comprising all the elements necessary to establish a previously untrained person in the business. This enables individuals to start their own businesses without having to develop their own ideas and utilising an existing brand and established market. Of course, whilst each franchise business is owned and operated by the franchisee, the franchisor controls the quality and standards of the way in which the business is...